DFI Examines The Optical Beltway: Bringing New Light to the Nation's Capitol.

Business Editors/Hi-Tech Writers

WASHINGTON--(BUSINESS WIRE)--Dec. 19, 2000

Red tape, white hair, and blue blood - these characterizations of our national colors have become unfortunately symbolic of the inefficient and static nature associated with our Nation's capitol.

However, as illustrated in a new report by DFI International and SwannStreet Ventures, the nation's Capitol region has also evolved into a dynamic center for the development of optical networking technology, some of the hottest and most important technology on the high-tech landscape.

With the recent, highly publicized Wall Street successes of the locally-based Corvis and Ciena Corporations (with market caps of $15 bln and $29 bln respectively) driving the current glut of attention, many have asked, how did Washington, DC explode on the optics scene so quickly? The answer is - it didn't.

For the past 40+ years, the greater Washington area has been slowly evolving into an ideal location for optical development, thanks to the amalgamation of a set of unique characteristics.

While DC has gained national infamy for its miserable automobile traffic, few are of aware of the region's fundamental role in data traffic networks. The foundations of the modern Internet actually began in Washington, DC with the Department of Defense.

Additionally, Northern Virginia hosts MAE East, the primary connection and collocation point for all ISPs on the East Coast and Europe, and the world's busiest Internet exchange.

With these legacy networks providing a foundation for optical development, the region's true drivers have emerged.

The trailblazing of optical newcomers (Ciena, Corvis) and the arrival of optical bellwethers (Lucent, Tellabs), coupled with a growing regional VC community, strong government R&D roots, and an ample pool of talented optical engineers has pushed the region to the forefront of the optical industry.

Moreover, the region has successfully attracted and retained companies and employees with unique financial and quality of life benefits.

This report highlights the characteristics that have slowly developed to make greater Washington, DC a prime area for optical development and profiles two of the area's hottest new optical startups: Cogent Communications and Ocular Networks.

In an effort to explore opportunities and solutions being addressed by DC area optical networking players, DFI International and SwannStreet Ventures, in partnership with Merrill Lynch, will host the Optical Beltway Roundtable on January 10, 2001.

For a complimentary copy of the full report or more information regarding the Optical Beltway Roundtable, please visit www.swannstreetventures.com, or contact Tim Garnett or Mike Snow @ 202-452-6900.

About DFI International & SwannStreet Ventures

Founded in 1984, DFI International provides high-tech start up services including management consulting, value proposition analysis, business plan development and evaluation, competitive assessments, market research, and assistance in securing pre-seed and early stage capital. Areas of expertise include telecommunications, convergence technologies, aerospace, defense and other high technology industries.

SwannStreet Ventures, LLC provides pre-seed and seed level capital, as well as consulting services to entrepreneurs and high-tech start ups. End